Microsoft has announced plans to construct a state-of-the-art artificial intelligence (AI) data centre in Mount Pleasant, Wisconsin, which the company claims will be the most powerful of its kind globally. This facility is set to become operational in early 2026 and represents a significant investment in the region’s technological infrastructure.
Strategic location and scale
The new data centre will occupy 1.2 million square feet across three buildings on a 315-acre site in Racine County, previously earmarked for a Foxconn LCD manufacturing plant. Foxconn’s ambitious US$10 billion project, announced in 2017, was scaled back significantly by 2018, leading to the site’s underutilisation. Microsoft’s decision to repurpose the location underscores a strategic move to leverage existing infrastructure for cutting-edge technological development.
Microsoft’s investment in the Wisconsin data centre is part of a broader US$7 billion commitment to the state, which includes the construction of a second, equally expansive facility. Once both centres are operational, they are expected to employ approximately 800 individuals, contributing to the local economy and technological workforce.
Advanced technology and environmental considerations
The Mount Pleasant data centre will house hundreds of thousands of Nvidia GB200 graphics processing units (GPUs), interconnected to form a supercomputer capable of processing data at terabyte-per-second speeds. This setup is anticipated to accelerate AI model training, facilitating advancements in fields such as medicine, science, and engineering.
If intelligence is the log of compute… it starts with a lot of compute! And that’s why we’re scaling our GPU fleet faster than anyone else.
— Satya Nadella (@satyanadella) September 18, 2025
Just last year, we added over 2 gigawatts of new capacity – roughly the output of 2 nuclear power plants.
And today we’re going further,… pic.twitter.com/cZJ3pdN1rX
In terms of environmental impact, Microsoft has designed the facility with sustainability in mind. The centre will utilise a closed-loop cooling system, requiring minimal water input and reducing annual consumption to approximately 8.4 million gallons—the equivalent of an average restaurant’s water usage. Additionally, Microsoft plans to pre-pay for electrical infrastructure to mitigate potential increases in local utility rates, thereby alleviating financial pressure on the surrounding community.
Economic and political implications
The Mount Pleasant site has been a focal point of political attention due to the previous Foxconn project’s failure to meet its ambitious targets. President Joe Biden highlighted Microsoft’s new initiative during a visit to Wisconsin, contrasting it with the earlier Foxconn endeavour, which promised significant job creation but ultimately did not deliver as expected. Biden’s administration has positioned the Microsoft investment as a model of successful public-private collaboration aimed at fostering sustainable economic growth.
Microsoft’s decision to invest in Wisconsin aligns with its broader strategy to expand AI capabilities and infrastructure across the United States. The company’s commitment to the region is expected to have lasting effects on both the local economy and the broader technological landscape.
